Life insurance can cover final expenses, or costs associated with your death—for example, funeral and burial arrangements, any potential legal expenses involved in settling your estate, and your debts. But life insurance can do much more. You can use life insurance to replace the income you would have provided if you’d lived as long as expected. That would mean the people who depend on you are protected from the financial hardship that could come from losing you. They can use that income replacement to pay for their living expenses, maintain their standard of living, and save for their goals. Life insurance can also help you while you’re alive. For example, some policies have an account value, which you may borrow against—though you’ll probably be charged interest, and the death benefit will be reduced by the loan amount plus the interest. If you own your own business, life insurance can secure your company’s finances, and you can offer it as a benefit to attract employees. As part of an estate plan, life insurance can also play a big role. Some people use life insurance benefits to equalize an inheritance—for example, leaving a valuable asset to one child and a life insurance   Read more…